Considering the information given below

RF = 0.07, E (RM) = 0.15, Rm = 0.2 and Stock Expected Return

Walmart 0.17 Dayglow 0.11 Microsoft 0.15 Fine Brands 0.13

a) Derive the Security Market Line (SML) and Capital Market Line (CML) equations, display them graphically and determine the total risk and systematic risk balance prices.?

b) Discuss the effects of risk aversion in the market in terms of both CML and SML.

c) Find out if you decide to invest $ 7,000 in Walmart, Dayglow $ 4,000 $ 8,000 Microsoft and $ 6,000 Fine Brands, measured by the expected return and beta.